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Listed below are selected account balances for Pinnacle Corporation at December 31, Year 1 and Year 2.  Also available for you is selected information from the income statement for Pinnacle for the year ended December 31, Year 2.  

Selected balance sheet accounts:         Year 1                                       Year 2

Assets:

Accounts Receivable                           $23                                           $17

Prepaid Salaries                                     5                                              8

Prepaid Rent                                         2                                              7

Property, Plant & Equipment               215                                           265

(Accumulated Depreciation)                  (68)                                           (85)

Investments                                         20                                             38

Liabilities & Stockholders'

Equity:

Salaries Payable                                   11                                             22

Notes Payable                                      41                                             55

Dividends Payable                                 3                                              8

Contributed Capital                              29                                             32

Retained Earnings                                39                                             46

Selected income statement information for the year ended December 31, Year 2:

Sales revenue                                     $86

Depreciation                                        25

Salaries Expense                                  32

Gain on sale of equipment                     11

Loss on sale of investments                     6

Net Income                                         20

Additional information:

1. During Year 2, Property, Plant & Equipment costing $34 was sold for cash. 

2. During Year 2, $28 of Notes Payable were issued in exchange for Property, Plant and Equipment.  This involves an exchange of Notes Payable for Property, Plant and Equipment.

3. During Year 2, the firm sold Investments for $9 cash. 

Required:  Determine the correct dollar amounts for each of the following items.  Place your answers inthe spaces provided.

WHAT IS THE CASH PAID FOR PROPERTY, PLANT & EQUIPMENT YEAR 2?

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M93112009
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